Elon Musk was sued by the Securities and Exchange Commission ( SEC ) for failing to report his ownership of Twitter stock in a timely manner in early 2022, before purchasing the social media platform.
In its suit filed late Tuesday ( local time ) in Washington’s US district court, the SEC claims that as a result of this delay, Musk was able to purchase shares at a lower price, underpaying by at least$ 150 million, reported the Associated Press.
According to the problem, Musk began accumulating Twitter stocks in early 2022 and by March, he owned more than 5 per cent of the company’s inventory. He was officially required to disclose his rights at this time, but he didn’t do so until April 4, which was 11 times after the date.
One of Elon Musk’s attorney, Alex Spiro, gave a statement to Bloomberg, characterising the SEC’s legal action as” an admission” of their weak position. Spéro defended his customer, saying that “everyone sees this fake as it is” and that “has done nothing wrong.
Musk bought Online in April 2022, and it was later changed to X the following year. After signing a deal to get the software, Musk attempted to back out of the deal, prompting the organization to reimburse him to maintain the merger.
The SEC announced that it had authorized an investigation into possible securities laws relating to Musk’s buys of Twitter property and his claims and filings with the SEC regarding the company as of April 2022.
The SEC requested a court order before filing the petition to urge Musk to give testimony as part of the Twitter acquisition investigation.
Gary Gensler, the latest SEC chair, is scheduled to resign from his place on January 20; it’s not yet clear whether the new administration will follow the lawsuit.
